Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual

BSA/AML Examination Procedures

Procedure

Comments

• Establish a process for sending and responding to requests, including ensuring that other parties with whom the financial institution intends to share information (including affiliates) have filed the proper notice. • Establish procedures for determining whether and when a SAR should be filed. 9. If the financial institution is sharing information with other entities and is not following the procedures outlined in 31 CFR 1010.540(b), notify the examiners reviewing the privacy rules. 10. Through a review of the financial institution’s documentation (including account analysis) on a sample of the information shared and received, evaluate how the financial institution determined whether a SAR was warranted. The financial institution is not required to file SARs solely on the basis of information obtained through the section 314(b) voluntary information sharing process. In fact, the information obtained through the section 314(b) voluntary information sharing process may enable the financial institution to determine that no SAR is required for transactions that may have initially appeared suspicious. The financial institution should have considered account activity in determining whether a SAR was warranted. Transaction Testing 11. On the basis of a risk assessment, prior examination reports, and a review of the financial institution’s audit findings, select a sample of positive matches or recent requests to determine whether the following requirements have been met: • The financial institution’s policies, procedures, and processes enable it to search all of the records identified in the General Instructions for section 314(a) requests. Such processes may be electronic, manual, or both. • The financial institution searches appropriate records for each information request received. For positive matches:  Verify that a response was provided to FinCEN within the designated time period.  Review the financial institution’s documentation (including account analysis) to evaluate how the financial institution

determined whether a SAR was warranted. Financial institutions are not required to file SARs solely on the basis of a match with a named subject; instead, account activity should be considered in determining whether a SAR is warranted.

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